Hyderabad, Sept 27 (KNN)  In a ruling which has wider ramifications , the Court of the Special Judge, Economic offences, here has sentenced the Managing Director of a Hyderabad -based small sized firm to rigorous imprisonment for three months along with a fine of Rs 5000 each for deducting tax at source from salaries, dividends and payments to contractors and not depositing with the government on time.

According to a release of the Finance Ministry, the Managing Director of the firm was punished under two offences committed under section 276B and 276C of the Income Tax Act.

It said the Court ruled that the assessee company had deducted tax at source from the salaries, dividends and payments made to the contractors, but had not deposited the tax so deducted to the credit of the Central Government within the prescribed time.

“The assessee company had also failed to issue the requisite certificates of TDS u/s 203 of the Income Tax Act.  The Court, after hearing both sides and perusing the documents came to the conclusion that the assessee had wilfully attempted to evade the payment of tax and had committed offences punishable u/s 276B and 276C(2) of the Act”, the statement said. (KNN/PC)